Reserve Funds to Balance Lake Zurich Budget

The Lake Zurich village board passed the FY 2013-2014 budget, Monday night, and trustees echoed that the process was much improved over previous years.

Trustee Jeff Halen said it was the best budget process in four years as it was easy to understand and all questions were answered.

Outgoing Trustee Rich Sustich said he had confidence in the budget, even though the board has not reached its goal of having a sustainable budget.

“I think this budget will be a success. The new trustees will have a bigger challenge,” Sustich said.

In order to balance the budget, the village needed to borrow $272,000 of reserve funds.

“We are fortunate to have a reserve. In the next two years we’re looking at a dwindling reserve,” outgoing Village President Suzanne Branding said. 

The budget totals $46,187,033, which reflects an increase of $646,955 or a 1.4 percent over the current fiscal year’s budget.

The budget includes a slight increase in the property tax levy of 3.8 percent, which is primarily used to fund an increase in police and fire pension contributions. Property taxes are the village's largest source of revenue.

Village Manager Jason Slowinski, in the FY 2013-2014 Budget document, stated, “There is no question that the economic realities of today present ongoing fiscal challenges for municipalities, including Lake Zurich, to the extent that have not been seen in previous decades.” He also recognized Finance Director Jodie Andrew for her leadership on the budget. 

Trustee Terry Mastandrea was the only trustee to vote against passage of the budget. Mastandrea said he was not in favor of cutting two fire inspector positions.  He said the loss of the positions would result in the fire department dropping from 100 percent inspections annually to 70 percent.

“Not getting into 30 percent of buildings is a big step backward,” he said.

During public comment on the budget, the only resident to speak was Jim Tarbet. He took issue with how water and sewer funds were being used as well as the use of the hotel tax to fund the Fourth of July festivities.

See the Proposed FY 2013-2014 Budget online. (The final budget, reflecting the transfer from the general fund reserve is not online)